Exhibit 99.58
Diodes Incorporated
FOR IMMEDIATE RELEASE
Diodes, Inc. Reports Third Quarter Results with Continued
Gross Margin Improvement
o Diluted EPS of $0.20 in Q3 2002
Westlake Village, California, October 30, 2002 - Diodes Incorporated (Nasdaq:
DIOD), a leading manufacturer and supplier of high quality discrete
semiconductors, primarily to the communications, computing, industrial, consumer
electronics and automotive markets, today reported financial results for the
third quarter ended September 30, 2002.
Third Quarter Highlights:
>> Revenue increases 33.4% from Q3 2001 and 1.1% from Q2 2002
>> Gross margin improves 220 basis points sequentially from the second quarter
to 26% >> Net income for the quarter of $1.8 million, up from a loss of $847,000
in the same period last year >> Average manufacturing capacity utilization
reaches 86% >> Average selling prices (ASPs) increase 4.5% sequentially,
reflecting shift to differentiated devices >> Total debt reduced by $3 million
and generated $3.1 million in cash flow from operations
Revenues for the third quarter of 2002 were $30.3 million, a slight sequential
increase from second quarter revenues of $29.9 million, and a 33.4% increase
from third quarter 2001 revenues of $22.7 million.
Net income for the quarter was $1.8 million, as compared to a loss of $847,000
for the three months ended September 30, 2001, and compared to income of $1.6
million in the second quarter ended June 30, 2002. Diluted earnings per share
were $0.20 for the third quarter of 2002, as compared to $(0.10) for the same
period last year, and $0.18 for the second quarter of 2002.
For the first nine months of 2002, the Company earned $3.5 million, or $0.40 per
diluted share, on revenues of $87.2 million, compared to net income of $199,000,
or $0.02 per diluted share, on revenues of $69.4 million for the same period in
2001. Nine-month revenues have increased 25.5% compared to last year.
C.H. Chen, Diodes' President and CEO, said, "We are encouraged by our solid
results for the third quarter of 2002 and our ability to increase revenue and
significantly grow income from operations, despite continued softness in the
semiconductor industry. For the third quarter, income from operations increased
to $3.1 million from a loss of $1.4 million in the same period last year, and
from a profit of $2.3 million in the second quarter. Our strong performance was
achieved through the success of our higher margin discrete products, quick
response to changing customer demands, expense control discipline and a
continued effort to maximize manufacturing efficiencies."
Diodes revenue growth in the third quarter was driven primarily by the strength
in the North American markets, which accounted for 57% of sales, up from 54% in
the second quarter. Diodes continued to shift its product mix from commodity
devices towards higher value, subminiature packaging and arrays during the third
quarter, which resulted in a 4.5% sequential improvement in average selling
prices (ASPs).
Capacity utilization increased to 88% at the Mainland China facility,
Diodes-China, from 80% in the second quarter, and to 83% at Diodes-FabTech, from
73% in the prior quarter. Increased capacity utilization of manufacturing
facilities and higher ASPs led to both year-over-year and sequential margin
improvements. The Company's gross profit margin was 26.0%, compared to 23.8% in
the second quarter of 2002 and 10.7% in the same period last year.
For the quarter, SG&A expenses were reduced as a percentage of sales to $4.3
million, or 14.2% of sales, as compared to $3.7 million, or 16.3% of sales, in
the comparable quarter last year, and compared to 14.6% of sales last quarter.
Research and development spending remained consistent with the previous quarter
at $460,000 as the Company continues to invest in developing leading
next-generation products.
"We are pleased with the market reception to our next-generation discrete
product lines," Mr. Chen continued. "During the third quarter, the share of
revenues generated by new products reached a record high and now accounts for
approximately 8% of total revenue. Our strategy is to leverage our flexible
manufacturing assets and competitive cost position to drive these devices from
niche to high volume applications. As we vertically integrate certain discrete
products, Diodes has seen our cost of manufacturing decrease, our margins
increase and our competitive position strengthen."
Diodes continued to improve its financial position, ending the third quarter
with $6.0 million in cash and cash equivalents, $13.4 million in long-term debt
and $55.5 million in shareholders' equity. Since the beginning of the year, the
Company has paid down $7.6 million in term debt and approximately $4.8 million
on its revolving credit facilities.
Mr. Chen concluded, "Diodes' strategic plan of consistent execution, expansion
of our marketing reach into new regions, and customer-driven innovation
continues to pay off. In the third quarter, we also began to establish a sales
presence in Japan for the first time in our history. We recently introduced
Japanese and Chinese translations to our website, which is an increasingly
effective marketing tool. We will invest in new products to position Diodes as a
technology leader for discrete devices and expect to spend approximately $1-2
million during the remainder of the year on capital expenditures to support new
product production.
"However, we continue to operate under very short customer lead times and there
is considerable uncertainty regarding the strength of end equipment demand in
key markets such as computing and communications. Therefore, for the fourth
quarter, we are projecting both revenue and gross margin to be flat to slightly
down on a sequential basis."
Diodes Incorporated will hold its third quarter conference call for all
interested persons at 8 a.m. PST (11 a.m. EST) today to discuss its results.
This conference call will be broadcast live over the Internet and can be
accessed by all interested parties on the investor section of Diodes' website at
www.diodes.com. To listen to the live call, please go to the Investor section of
Diodes website and click on the Conference Call link at least fifteen minutes
prior to the start of the call to register, download, and install any necessary
audio software. For those unable to participate during the live broadcast, a
replay will be available shortly after the call on Diodes website for 90 days.
About Diodes Incorporated
Diodes Incorporated (Nasdaq: DIOD) is a leading manufacturer and supplier of
high-quality discrete semiconductor products, primarily to the communications,
computing, industrial, consumer electronics and automotive markets. The Company
operates three Far East subsidiaries, Diodes-China (QS-9000 and ISO-14001
certified) in Shanghai, Diodes-Taiwan (ISO-9000 certified) in Taipei, and
Diodes-Hong Kong. Diodes-China's manufacturing focus is on subminiature
surface-mount devices destined for wireless devices, notebook, flat panel
display, digital camera, mobile handset, set top box, DC to DC conversion, and
automotive applications, among others. Diodes-Taiwan is our Asia-Pacific sales,
logistics and distribution center. Diodes-Hong Kong covers sales, warehouse and
logistics functions. The Company's 5" wafer foundry, Diodes-FabTech (QS-9000
certified), specializes in Schottky products and is located just outside Kansas
City, Missouri. The Company's ISO-9000 corporate sales, marketing, engineering
and logistics headquarters is located in Southern California. For further
information, visit the Company's website at http://www.diodes.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of
1995: Any statements set forth above that are not historical facts are
forward-looking statements that involve risks and uncertainties that could cause
actual results to differ materially from those in the forward-looking
statements. Potential risks and uncertainties include, but are not limited to,
such factors as fluctuations in product demand, the introduction of new
products, the Company's ability to maintain customer and vendor relationships,
technological advancements, impact of competitive products and pricing, growth
in targeted markets, risks of foreign operations, and other information detailed
from time to time in the Company's filings with the United States Securities and
Exchange Commission.
Source: Diodes Incorporated
CONTACT: Crocker Coulson, Partner, Coffin Communications Group;
(818) 789-0100 e-mail: crocker.coulson@coffincg.com or Carl Wertz, Chief
Financial Officer, Diodes, Incorporated; (805) 446-4800
Recent news releases, annual reports, and SEC filings are available at the
Company's website: http://www.diodes.com. Written requests may be sent directly
to the Company, or they may be e-mailed to: diodes-fin@diodes.com.
CONSOLIDATED CONDENSED INCOME STATEMENT and BALANCE SHEET FOLLOWS
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------------------- ---------------------------------------
2001 2002 2001 2002
-------------------- ------------------- ------------------ -----------------
Net sales $ 22,698,000 $ 30,287,000 $ 69,447,000 $ 87,157,000
Cost of goods sold 20,279,000 22,420,000 58,863,000 67,807,000
-------------------- ------------------- ------------------ -----------------
Gross profit 2,419,000 7,867,000 10,584,000 19,350,000
Research and development expenses 141,000 459,000 450,000 1,231,000
Selling, general and administrative
expenses 3,704,000 4,311,000 10,032,000 12,448,000
-------------------- ------------------- ------------------ -----------------
Total operating expenses 3,845,000 4,770,000 10,482,000 13,679,000
Income from operations (1,426,000) 3,097,000 102,000 5,671,000
Other income (expense)
Interest income 80,000 7,000 222,000 31,000
Interest expense (592,000) (288,000) (1,903,000) (926,000)
Other 94,000 (195,000) 211,000 (69,000)
-------------------- ------------------- ------------------ -----------------
(418,000) (476,000) (1,470,000) (964,000)
Income (loss) before income taxes and
minority interest (1,844,000) 2,621,000 (1,368,000) 4,707,000
Income tax benefit (provision) 1,052,000 (771,000) 1,741,000 (949,000)
-------------------- ------------------- ------------------ -----------------
-------------------- ------------------- ------------------ -----------------
Income (loss) before minority interest (792,000) 1,850,000 373,000 3,758,000
Minority interest in joint venture earnings (55,000) (83,000) (174,000) (219,000)
-------------------- ------------------- ------------------ -----------------
Net income $ (847,000) $ 1,767,000 $ 199,000 $ 3,539,000
==================== =================== ================== =================
Earnings (loss) per share
Basic $ (0.10) $ 0.22 $ 0.02 $ 0.43
Diluted $ (0.10) $ 0.20 $ 0.02 $ 0.40
==================== =================== ================== =================
Weighted average shares outstanding
Basic 8,147,902 8,190,887 8,142,333 8,177,506
Diluted 8,815,581 8,862,272 8,928,711 8,834,311
==================== =================== ================== =================
The accompanying notes are an integral part of
these financial statements.
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
ASSETS
December 31, September 30,
2001 2002
------------------- -------------------
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 8,103,000 $ 6,042,000
Accounts receivable
Customers 16,250,000 19,511,000
Related parties 1,486,000 3,718,000
------------------- -------------------
------------------- -------------------
17,736,000 23,229,000
Less: Allowance for doubtful receivables 343,000 373,000
------------------- -------------------
17,393,000 22,856,000
Inventories 17,813,000 16,864,000
Deferred income taxes, current 4,368,000 4,368,000
Prepaid expenses, income taxes and other current assets 1,266,000 2,518,000
------------------- -------------------
------------------- -------------------
Total current assets 48,943,000 52,648,000
PROPERTY, PLANT AND EQUIPMENT, at cost, net
of accumulated depreciation and amortization 44,925,000 43,217,000
DEFERRED INCOME TAXES, non-current 3,672,000 2,726,000
OTHER ASSETS
Goodwill, net 5,090,000 5,090,000
Other 628,000 1,044,000
------------------- -------------------
TOTAL ASSETS $ 103,258,000 $ 104,725,000
=================== ===================
The accompanying notes are an integral part of
these financial statements.
DIODES INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, September 30,
2001 2002
------------------ ------------------
(Unaudited)
CURRENT LIABILITIES
Line of credit $ 6,503,000 $ 1,874,000
Accounts payable
Trade 6,098,000 9,639,000
Related parties 3,149,000 3,263,000
Accrued liabilities 5,062,000 7,781,000
Current portion of long-term debt
Related party 2,500,000 2,500,000
Other 5,833,000 8,992,000
Current portion of capital lease obligations -- 156,000
------------------ ------------------
Total current liabilities 29,145,000 34,205,000
LONG-TERM DEBT, net of current portion
Related party 7,500,000 6,875,000
Other 13,664,000 3,566,000
CAPITAL LEASE OBLIGATIONS, net of current portion -- 2,530,000
MINORITY INTEREST IN JOINT VENTURE 1,825,000 2,045,000
STOCKHOLDERS' EQUITY
Class A convertible preferred stock - par value $1.00 per share; 1,000,000
shares authorized;
no shares issued and outstanding -- --
Common stock - par value $0.66 2/3 per share;
30,000,000 shares authorized; 9,227,664 and 9,280,664
shares issued at December 31, 2001
and September 30, 2002, respectively 6,151,000 6,187,000
Additional paid-in capital 7,310,000 7,942,000
Retained earnings 39,882,000 43,420,000
------------------ ------------------
------------------ ------------------
53,343,000 57,549,000
Less:
Treasury stock - 1,075,672 shares of common stock, at cost 1,782,000 1,782,000
Accumulated other comprehensive loss 437,000 263,000
------------------ ------------------
2,219,000 2,045,000
Total stockholders' equity 51,124,000 55,504,000
------------------ ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 103,258,000 $ 104,725,000
================== ==================
The accompanying notes are an integral part of
these financial statements.